Have you been thinking of buying a new home? With the current market conditions and fluctuating rates of real estate, it math be a good decision for many individuals and families to invest in their dream home in 2023. However, as property experts, we have seen many make the mistake of not researching well enough before making the plunge.
It may so happen that you pay a tad too much for an NJ property or do not negotiate the deal well, leading to a purchase that may not be feasible in the coming years. Considering how getting home is one of the biggest moves as per culture and finance, you better make this investment count!
We believe that the money you worked so hard to save must be used to finance a home that not just fulfills all your present and future needs but also fetches you an excellent resale value when needed. To help you arrive at the best decision possible, this article will address two very important questions.
The first section will deal with the factors that make a home worthy of fetching a good sale price, which can act as your buying checklist. The second part will comprise professional tips regarding property purchase.
Ready to gain better insights? Let’s get right into it.
How are homes for sale valued?
Realtors know what they’re looking for when they arrive at a property site for its valuation. If you wish to buy a house at the best price while enjoying all the perks, knowing how realtors value homes is essential for your research. Mentioned below are five such factors that decide the worth of a home while putting it on sale.
- The neighborhood environment: A mansion or condo could be the best piece of real estate in town, but it doesn’t mean much unless the neighborhood is a good place to live in. This is the reason why you’ll come across astonishingly beautiful homes for sale at a very low price- which may trick buyers into investing. However, if the surrounding neighborhood is not safe, family-friendly, and well-developed, you’d be making other expenses to cover what the builder did not provide. This is why it is wise to go through real estate agencies, as they know their areas and neighborhoods better than anyone else. Agencies also value homes fairly based on this factor so that the home is not overvalued.
- Local connectivity and resources: Once a home is graded based on whether it is part of a gated community, open housing, or risky area. The realtors gauge how connected it is to major facilities. Local transport and its availability is one of the primary checkpoints. Can you reach the subway or freeway in record time, or does the buyer have to rely heavily on personal transport? How close are the nearest hospitals, emergency rooms, schools, and grocery stores? Having such resourceful services close by makes a residential property prime for top value as buyers want to experience the ease of travel and convenience in their lifestyle.
- Amenities and security: Now comes the question of assessing the property itself. Does it have all the amenities a buyer would want to invest in? Is the property solar powered, or does it still use traditional sources of electricity and heating? These questions, along with the recent renovations made, can boost or reduce the sale price of properties. If you wish to find properties that prioritize amenities and safety, check out homes for sale in Ocean City, NJ. The new generation of buyers is highly conscious about sustainable living and wishes to invest in properties that already have all the amenities to help them maintain that lifestyle.
- Size of the property and usable area: There is a difference between the total area of the residential property and the usable area. For starters, the square footage may seem quite substantial but may not be available for full use and utility. Home valuation experts know this and try to give buyers value for their money by knocking down the price of properties that may have a lower usable area on an otherwise large property.
- Age of the property: Last but not least, the fifth most crucial factor that determines the sale price of a residential property is its age and condition. A seller may have renovated the property to match the best standards of 2023, but it does not change the fact that the foundation and beams are over 15 years old! It also matters which year the property was built in, considering that the materials and skills used in some old-fashioned homes are still classic and extremely resilient as compared to today’s matchbox housing. This would require the evaluators to check the blueprints and run an on-site assessment of the property for its condition before a price tag is put on it.
Things to know before buying a home
Now that you understand how properties are valued, we’re sure you’re excited to start looking for homes and connect the dots yourself. However, it would be prudent to follow the tips mentioned below to ensure that your new home is the best decision for your finances and family. Let’s take a quick look:
- Work with a credible realtor: We could not possibly stress enough regarding working with the right real estate professional. Hire someone with expert knowledge of the area you’re scoping, including information about the neighborhood, healthcare facilities, educational establishments, and all other facilities you’d look for. Talk to them extensively about what kind of area you wish to live in, your budget, the non-negotiables, and anything else you find worth mentioning. This will help them match you with the best properties on their roster.
- Negotiate your sale contract: When it comes to finalizing the deal on a property showing you love, make sure to scan the contract well. Also, don’t shy away from pursuing negotiations on the price and terms since a contract is meant for revisions and counteroffers! Who knows, you may land a discount and a few renovations if you put your conditions in the right manner.
- Think about your future lifestyle before buying: Usually; we buy a home considering our present needs and lifestyle. However, this may not necessarily be the lifestyle you have in the future, as we all upgrade over time. If it fits your pocket, buy a house that not just suits your present checklist but also is future-ready. This applies if you plan to expand your family, move your parents in, start a business at home, or get a few pets. Space and amenities play an essential role here, so think wisely!
- Consider the rework and repair costs: Don’t fall for a property valued cheaply with the caveat of needing a little fixing. Repairs and renovations are not just valued at the material but also labor per hour, time, and planners. Weigh the total cost of a property that’s going to be a repair project over a fully-prepped one before buying.
- Choose a budget you can afford: Last but not least, buying an overly expensive loan with heavy loan funding may be a death trap for your future plans. Instead, choose a comfortable budget that your financing options can afford with ease.
If you’ve read the article this far, you’re far more informed than many home buyers who make hasty decisions without running the right checks. Based on the two sections explained above, feel free to find listings that fit the bill and talk to realtors you can trust to rally for you. We hope this article helps you arrive a step closer to finding you’re forever home!